Monday, April 29, 2024

Rural rate hike mooted in Waikato plan

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Feds suggests rural compliance and biodiversity improvement costs be borne by central government instead.
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Waikato Regional Council’s 10-year plan is out for consultation, proposing rate increases for rural landowners to fund rural compliance and biodiversity improvements.

The council’s draft plan proposes an increase in rates revenue from current ratepayers of 6% in 2024-2025, 8% in 2025-2026 and 3% in 2026-2027.

In the first year of the plan, that means an increase of less than $50 a year for more than 80% of Waikato ratepayers. Those paying flood protection and catchment rates are likely to see larger increases.

Waikato Federated Farmers president Keith Holmes said that while he recognises that the council is genuinely trying to be responsive to the economic situation facing farmers, the reality is they cannot afford an increase.

“Farmers just don’t have the money. Any rate increase is another knife in the back of the viability of farming,” Holmes said.

The proposed increases from 2024-2025 to 2026-2027 amount to a 14% increase in total, he said.

He questioned whether what is being funded by the proposed targeted rates should come from central rather than local government.

Council chair Pamela Storey said elected members will make decisions in May on the council’s work for the next 10 years and its impact on rates.

“Before we do, we want to hear the views of our communities, and the best way to do this is by making a submission.”

Storey said much of the council’s new work over the next three years is about “collecting the right information to help build the resilience of our regional environment into the future”.

This includes developing a water security management plan, reviewing how critical infrastructure is funded, furthering the understanding of the region’s natural hazard and climate risks to enable resilient decision making, and identifying actions to rehabilitate the Lake Waikare and Whangamarino Wetland catchments.

The council is proposing a new primary industry compliance rate increase from $275 in 2024/25 to $376 in 2026/27 for properties of 20 hectares or more.

This increase is based on changes to how the council’s permitted activity monitoring programme is currently funded via targeted and general rates.

It is also based on changes to how the council’s Primary Industry Engagement (PIE) work is funded. This relates to farm planning regulations and is currently fully funded from the general rate. These regulations impact on properties 20ha and greater.

A 50% funding contribution – decreasing to 20% over three years – will come from the general rate to recognise the wider water quality improvements sought by communities. 

The remaining cost will be recovered through a targeted rate on properties 20ha or greater.

The council is also proposing an increase in the per-property natural heritage rate to $8.68. This brings it in line with inflation since the programme was established.  A second option has it increasing to $15 – providing an additional $1.403 million (including GST) per annum, and a third option has it retained at $5.80.

Other proposals being consulted on include:

• Collecting a region-wide public transport rate 

• Discontinuing the Regional Development Fund, so funds and staff time can be redirected elsewhere 

• Funding for Te Waka, the regional economic development agency 

Consultation ends at 4pm on Thursday May 2.

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